Impact of Import and Export of Energy Supply on the Total Electricity Generation Model

Abstract

Renewable and non-renewable sources are crucial especially in the production of electricity. In Malaysia, we are mainly using fossil fuels to generate electricity. To ensure a sufficient amount of energy sources, we require to import these energy supplies. Since Malaysia has a large amount of petroleum and crude oil, we need to export the resources and indirectly, it can contribute by increasing our country's income. Thus, the main purpose of this study is to explore any significant impact of import and export of energy on the total electricity generation in Malaysia. All of the data are taken from the Energy Commission (Malaysia). Range from 1980 until 2017 every year. Ordinary least square (OLS) and correlation analysis have been implemented to achieve the objectives of our study. The energy supply was found to be significant with the total electricity generation exclude the export of crude oil which shows it is insignificant. Then, our findings proved that the highest correlation is between the import of petroleum and import of coal. On the contrary, the import of crude oil is the lowest negatively correlated to the export of crude oil. For the K-S test, it justified that the residuals are normally distributed. Our results confirm the energy supply influences either in a positive or negative impact on the total production of electricity in Malaysia.